Second chance at free carbon permits

Age
Saturday 28/2/2009 Page: 9

HEAVY carbon-emitting industries that miss out on government compensation will get a second chance at free carbon permits through a committee established by Climate Change Minister Penny Wong. The committee will be led by former Caltex chairman Dick Warburton and has been asked to review all industries not already qualified for free permits under the Government's proposed emissions trading scheme.

In advice released last week, the Government listed 33 industries that will qualify for free permits as "trade exposed". These industries included petrol refining, aluminium refining and methanol production. But Mr Warburton told The Age that industries that missed out would have a chance to have the decision reviewed by the expert panel to determine whether they had been treated fairly by the Department of Climate Change.

"We will be looking at the types of activities that have been assessed as being valid for some assistance," he said. "Some industries have already been proclaimed as valid within that, but the Government has properly covered all of the industries." The committee review conies after one of the Government's closest industry allies, the Australian Industry Group, changed its stance on the emissions trading scheme, calling for it to be delayed by two years to
2012.

The group did, however, retain support for the design of the scheme, but its call for a delay was backed yesterday by the Australian Chamber of Commerce and Industry. Senator Wong rejected industry calls for a delay to the scheme, saying the Government had set its time line and would stick with what was outlined in its policy document last year. However, Ms Wong did announce a delay in the release of the draft legislation for the scheme from the scheduled "late February" to March 10.

Opposition Leader Malcolm Turnbull welcomed the calls by industry for a delay. "For the risk of a year or two of rushing into it, (Prime Minister Kevin Rudd) is putting our economy at very grave risk and no environmental gain," he said. The Opposition has yet to form an official position on emissions trading or the Government's scheme and is awaiting advice from economist David Pearce, whose report is expected to be handed to the Opposition within a fortnight.